Lenders DO Want Your Short Sale Offers
The Change on how Lenders process Short Sales is finally here! Lenders now WANT your Short Sale Offers!
Contrary to popular belief, lenders are now more and more agreeable to working with short sale specialists and are asking us for any and all offers! Although it seems like we’re constantly fighting against them, in recent weeks I have had multiple instances where lenders, and specifically their loss mitigation departments, have contacted me directly begging for any offers to be presented to them! I can finally see many changes, within the majority of these foreclosing lenders, to accept our offers and get them reviewed more quickly to prepare to close.
Remember, the reality is…the vast majority of today’s Lenders do not want to take these properties back as a bank owned property due to the fact that they are not in the “property management” game. If they were then they would have to hire more employees to manage, fix up, and then finally sell those properties (not to mention they would incur more and more debt and extended liability). They’d much rather prefer to have someone else do that work for them!
How do we know?
Out of our 120 short sale files we are currently managing, there has been a common theme in the last two months of this changing. One current example of this is a property we are negotiating a short sale (on behalf of another real estate agent) in our home state of Connecticut in which Chase is practically begging us to get an acceptable offer in to them. They stated that “as soon as you get a practical offer in we will get it approved right away!” This example and the many I incur on a daily basis proves to me that the short sale process within many of these lending institutions is getting quicker and easier! On another property I was negotiating on (with Countrywide Home Loans), I got into a long conversation with a loss mitigation supervisor about how we can get our short sales done in a quicker time frame; she stated that “our internal systems are finally at the level they need to be in order to handle the volume that they get per day.” This is great news to real estate investors and agents that specialize in short sale transactions.
To get back to the property with Chase, it is one that we’ve been working on for 4 months, and have seen several different buyers come and go, all the while working with a few different negotiators/loss mitigators. With this one, the current negotiator has actually come out and said that they’d rather not take the property back, and has done everything on her end to facilitate any offer I bring in to get a quick and fair review. She even convinced her supervisor to put aside the BPO’s (broker’s price opinion) they have on file and refer to the last buyer’s appraisal, which is roughly $30k less than their lowest value.
Believe it or not, lenders are aware of what’s going on in the market, and are begging to get offers in before the scheduled foreclosure so that they don’t have to take the property back. They now seem to understand what we’re doing for them. And they are more than willing to review any end buyer’s offer, as long as they’re presented in a professional manner. The fact of the matter is that anyone doing short sale transactions today should stay plugged in to other short sale specialists so you can stay up to date with this dynamic and exciting industry. Some sites that give great updated short sale information are www.preforeclosuredailygrind.com and also www.managemyshortsale.com.
The great thing about the current changes within a lot of these foreclosing lenders is the fact that we now are getting the sense that lenders do in fact appreciate the hard work we do, and that they are glad when they receive offers from us because it means they may not have to deal with marketing and selling the property themselves, all the while incurring more debt.
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Hey guys. I’m still trying to figure out how I as an investor/ loss mitigator gets paid when doing ss for a real estate agent. Is it a percentage included in the buyers offer of the sale price. If so what is the typical % we can charge. Thanks for your help